Environment TCFD disclosures

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Governance

The Ceres Sustainability Promotion Committee meets once a year in principle with the President and Representative Director acting as chairperson. Each year they deliberate on the identification, evaluation and management of risks and opportunities associated with sustainability, including climate change, as a whole. The Committee chairperson reports the details of this meeting to the Board of Directors.
When making decisions on all business activities (strategies, budgets, business plans, investments, etc.), we ensure the consistency of acknowledged risks and opportunities and the identified materiality before our decisions are implemented.

Strategy

Risk/Opportunity Classification

Risk/Opportunity
Actualization Period

Expected Impact and Targeted Area

Impact on our Business

Less than 2°C
Scenario

4℃
Scenario

Risk

Transition risk

Policy and regulatory risks

Short to medium term

[Company-wide]
Energy supply costs are rising due to the implementation of carbon pricing and shifts to low-carbon energy usage.

Medium

Low

Market risk

Medium to long term

[D2C]
When not enough is done in regards to climate change measures within product supply chains (e.g., cosmetics and health foods manufactured and sold by the company), the company's products may fall out of favor with its customer base.

Medium

Low

Reputational risk

Medium to long term

[Company-wide]
Inadequate response to climate change by the company will make it difficult to procure funds, secure human resources, and continue business with customers and suppliers.

High

Low

Material risk

Acute event risk
(intensification of extreme weather events)

Short to long term

[Company-wide]
It will become difficult to provide products and services due to damage to offices, data centers, and contractor factories in the event of a disaster, etc.

Low

High

Opportunities

Resource efficiency

Medium to long term

[Company-wide]
Costs will be reduced by improving energy efficiency and through high capital efficiency.

Medium

Low

Energy source

Medium to long term

[Company-wide] · Energy supply costs are reduced as renewable energy power generation and other technologies become widely adopted. · Energy can be steadily procured by distributing energy sources.

Medium

Low

Products and services

Short to medium term

[Points] · Increased advertising for products and services with low environmental impact · Improvement of the popularity of our point media, "Moppy" due to increased donations to environmental organizations

[D2C] · Increased preference for products such as cosmetics and health foods manufactured, sourced, and packaged with low environmental impact

[Blockchain] · Increased preference for cryptocurrency staking services with comparatively low power consumption

High

Low

Market

Short to long term

[Company-wide]
Enjoyment of investment returns from participation in new markets using our core technologies

High

Low

Resilience

Medium to long term

[Company-wide]
Reduction of the risk of disruption to product and service distribution by geographically distributing offices, data centers, and outsourced product manufacturing facilities

Medium

High

Referenced Scenario
RCP2.6 (IPCC) and SDS (IEA) are used for the below 2°C scenario, and RCP8.5 (IPCC) and steps (IEA) are used for the below 4°C scenario. The risks and opportunities are identified and their impact levels are analyzed based on their respective assumed influences on society.

The time periods for the realization of risks and opportunities are defined as follows
Short-term:By the year 2026, which corresponds to our Medium-Term Management Plan period.
Medium-term:By the year 2030, which is the deadline for Japan to reduce greenhouse gas emissions by 46% from 2013 levels.
Long-term:By the year 2050, which is Japan's stated goal of achieving net-zero greenhouse gas emissions.

Risk management

Ceres believes that risks and opportunities should be identified and evaluated from multiple perspectives rather than limited to particular areas.
Due to this belief, we identify and evaluate risks and opportunities along with those related to climate change in a comprehensive way with those related to overall sustainability in order to determine our priorities.
The identified risks and opportunities are shared with the Risk Management Committee and are assessed in a comprehensive manner with other risks and opportunities.

Metrics and targets

Ceres is a member of the Japan Climate Leaders' Partnership (JCLP) and has shown its desire and drive to convert its electricity usage to 100% renewable energy. We have also participated in the Renewable Energy Pledge 100 RE Action campaign. Starting in fiscal year 2021, we began work on reducing our CO2 emissions by 100% by switching the power used for our offices and web servers such as our Moppy point site to electricity 100% sourced from renewable energy resources.

Ceres uses the GHG (Greenhouse Gas) protocol to measure and catalog our Scope 1, Scope 2 and Scope3 emissions.
We have achieved zero emissions for Scope 1 and Scope 2 emissions since fiscal year 2021.
In addition, we began measuring Scope 3 emissions in fiscal year 2023 and will continue to do so in the future.
We have not set any targets at this time, but will continue to consider them while keeping an eye on future trends.